Why Legalizing Online Casinos is Harder than Online Sports Betting

Online sports betting is often the initial online gambling activity that many states choose to regulate, with only a few jurisdictions having regulated online poker markets. However, it is important to note that certain forms of online gambling are viewed more favorably by voters and state legislators than others. This varying level of acceptance is the reason why legalizing online casinos presents greater challenges compared to legalizing sports betting.

Although sports betting is often seen as a component of being a sports enthusiast, it is important to note that it does not necessarily demonstrate one’s knowledge of sports. Furthermore, some individuals mistakenly perceive sports wagers as comparable to high-risk investments, which is not the case. Additionally, certain individuals may consider sports betting as a harmless companion activity to sports, but the potential harm it poses depends on the safeguards in place for those vulnerable to gambling disorders.

Unlike sports betting, casino-style games do not have any direct connection to popular activities beyond their own realm. Online casinos are solely focused on the thrill of taking chances. Slot games, for instance, involve sacrificing long-term profits in return for sporadic short-term victories. Table games, on the other hand, may conceal the mechanics of slot machines, but essentially function in a similar manner.

Legalizing online casinos poses a greater challenge compared to legalizing online sportsbooks due to the possibility of heightened gambling addiction and the absence of a complementary activity to counteract its negative perception.

The One Perk Online Casinos Have Over Online Sportsbooks

There are two financial advantages that online casinos have over online sportsbooks. The revenue generated by online casinos is:

• Greater than online sportsbooks
• Consistent all year round.

The sportsbook’s financial year aligns with the sports seasons, with the busiest period occurring from August to March, which aligns with professional and college football and basketball. The summer months in between experience a decrease in activity.

On the other hand, online casino revenue remains consistent throughout the year in contrast to sportsbooks. In Michigan, online casinos have consistently contributed between $19 million and $26 million in state tax revenue each month of 2022. In comparison, Michigan sportsbooks paid approximately $360,000 in state taxes during their lowest month and $1.9 million during their highest month. It is noteworthy that sportsbooks’ lowest tax month was in February, primarily due to the deduction of Super Bowl promo credits.

Although online casinos generate significantly higher tax revenue compared to online sports betting, the negative perception associated with them cannot be easily overcome. Unlike land-based casinos, online casinos lack the advantages of creating local low-skilled jobs, providing entertainment, and offering food and beverage services, which could help counterbalance the stigma associated with gambling.

Bet365 is soon arriving in MA, allowing residents to become acquainted with its services.

Future of Online Casinos in Massachusetts

After the introduction of online sports betting in Massachusetts, anxieties surrounding online gambling in general may decrease. This positive development can result in reduced resistance towards online casinos, which is evident by the Indiana House introducing two online casino bills subsequent to passing the online sports betting legislation.

Nevertheless, both bills failed to pass through the committee stage, resulting in their demise. At the time, Indiana’s legislative session was drawing to a close, and the presence of surplus revenue diminished the need for additional funds. From a political standpoint, it would have been more compelling to legalize online casinos during a period of greater financial urgency. By transitioning any emerging industry from the underground economy to a regulated one, the state can generate fresh tax revenue without burdening its citizens with additional taxes.

In order to promote the passing of an online casino bill in Massachusetts, legislators will be advocating for the inclusion of online sportsbooks, increased tax revenue, and a more stable source of tax income.

However, for online casinos to be launched in a responsible manner, it is crucial to have effective measures in place to prevent problem gambling. Currently, the sports betting industry is facing increased regulatory scrutiny due to negative coverage in the New York Times. In response, New York has proposed a bill to regulate welcome bonus terms that are considered “predatory.” This development may encourage Massachusetts to prioritize its responsible gambling initiatives, including funding and addressing any existing weaknesses.

In general, online casinos face an unfavorable political environment. Although some markets have legalized it, there is no guarantee of further expansion, especially after the introduction of online sports betting.